Fundraising has declined, but that's only part of the pre-seed story. Valuation caps have risen for the smallest rounds, suggesting investors now foresee higher upside for very early-stage startups, likely influenced by productivity gains from AI.

A picture is emerging in the early days of the AI age: Investors have grown more selective, but rising valuations show that VCs believe many of these young, lean startups are poised for explosive growth in the years to come.

Explore key trends across stages and sub-sectors in this detailed breakdown that highlights why healthcare investors typically require a bigger piece of the pie.

Early-stage investors say that this change is symptomatic of larger transitions underway in the venture market, including an expansion in the number of solo GPs and other emerging managers.